Layaway, other changes irk Wal-Mart loyalists

[piemaker720]

Originally Posted by Texasbelle

The people who need to use layaway could get the same effect by using a savings account!

Not really, that's easy to say when you don't rely on layaways to help buy for more than a couple of kids.

[howela]

Mrs. howela used to Christmas shop everything on lay-away when our children were young. She could set aside $500 worth of gifts for $50 and shop early when the crowds were smaller and selection was best.
Now the kids are grown and gone and I don't get anything for Christmas.
♪♫ ♫♫ ♪♪ ♪♪ Oh I believe...♪ ♪♫ in yesterday...♪♫ ♫ ♫♪ ♪ ♪♪

[joepole]

It's also easy to say if you have even a basic understanding of how credit and banking works. Actually, you don't even have to do that, you just have to realize that Wal-Mart taking your money from you doesn't make you pay anything off faster, you're just as well off using a coffee can, they're not going to run out of school uniforms while you save up.

[Texasbelle]

Pie, What is the difference in you tucking away say $10 a week or $20 a week in a Joe suggested coffee can or a T'belle suggested savings account (that's the cost of the whole McDonald's meal you order by the way) AND placing something on layaway at WalMart? Nothing. At the bank you actually could make some money off of interest if you'd do this every week for 52 weeks of the year regardless of the need, school clothes or Christmas.

[Pocahontas]

It's not the best way but you can use a credit card too Pie and pay it off over time. Isn't that similar to layaway? I'm not real sure how it works?

[piemaker720]

Originally Posted by Pocahontas

It's not the best way but you can use a credit card too Pie and pay it off over time. Isn't that similar to layaway? I'm not real sure how it works?

No, on credit cards you pay interest on the balance you owe each month, so you are paying more money for items. On a layaway you are not paying interest, you make a payment and you can see exactly what you owe each time. As for the can, if people would admit it, if you had a can and was putting $5.00 a week in for something special. If something came up you would not be tempted to use the money, if your child came in and needed money for something you would not use the can money thinking I'll put it back later. Now for savings account, I have figured this for everyone to see.

Capital One Savings 5.00% ? <-> $100 min

ING Direct Savings 4.50% QFX OFX $25 bonus for new accts with $250 deposit

CitiBank eSavings Savings 4.75% ? ? Requires CitiBank EZ-Checking account
which may charge fees

HSBC Direct Savings 5.05% QFX OFX New money promotion: 6.0%

Regular Passbook Savings: An interest bearing savings account available to anyone. Interest is added to the account quarterly.

$10.00 a week for 3 months equals $120.00 that's 1 quarter
5% interest on $120.00 a quarter equals $6.00
That is if they pay 5%, some pay less than that.

[Texasbelle]

Originally Posted by piemaker720

No, on credit cards you pay interest on the balance you owe each month, so you are paying more money for items. On a layaway you are not paying interest, you make a payment and you can see exactly what you owe each time. As for the can, if people would admit it, if you had a can and was putting $5.00 a week in for something special. If something came up you would not be tempted to use the money, if your child came in and needed money for something you would not use the can money thinking I'll put it back later. Now for savings account, I have figured this for everyone to see.

Capital One Savings 5.00% ? <-> $100 min

ING Direct Savings 4.50% QFX OFX $25 bonus for new accts with $250 deposit

CitiBank eSavings Savings 4.75% ? ? Requires CitiBank EZ-Checking account
which may charge fees

HSBC Direct Savings 5.05% QFX OFX New money promotion: 6.0%

Regular Passbook Savings: An interest bearing savings account available to anyone. Interest is added to the account quarterly.

$10.00 a week for 3 months equals $120.00 that's 1 quarter
5% interest on $120.00 a quarter equals $6.00
That is if they pay 5%, some pay less than that.

But Pie, that is $6.00 you wouldn't have had before!!! How much do you typically spend on Christmas on say two kids? Say $1000.00. You could take the $1000 divide it by 42. The 42 weeks would be from Jan to mid November. You'd have your money saved by the time of Thanksgiving so you could shop the day after Thanksgiving sales. If you saved $25 a week which is skipping one meal a week of eating out, you would have saved $1090 plus the interest. If you put it in the bank savings account and consider it untouchable, then there is no problem. It's all about making choices which benefit you best.